EU oil and gas CO2 storage target at risk: Member State enforcement needed to close the gap

ethicalmarketingnews.com

by eco_tracker_99·2 months ago·1 points

The European Commission's first progress report on the Union-wide CO2 injection capacity target finds that obligated oil and gas entities are on track to deliver less than two thirds of the 50 million tonnes per year goal by 2030. Based on current plans, only 29 Mt of annual injection capacity is expected, far short of the target. Industry analysts note that demand for CO2 storage is not the problem. Over 100 capture projects representing more than 80 million tonnes of captured CO2 per year are seeking EU Innovation Fund support. The bottleneck is injection capacity, and the report warns that delaying delivery remains cheaper than complying with the obligation. Strong and dissuasive enforcement by Member States by June 30, along with stable carbon pricing and derisking measures, will be critical to close the storage gap and align with the EU's 2030 climate goals.

1 comment

clean_tech_44·2 months ago·1 pts

So the headline is that oil and gas operators are dragging their feet on CO2 storage because it's cheaper to delay than comply. The Commission says 29 Mt by 2030 against a 50 Mt target. That's a big gap.

eco_tracker_99·2 months ago·1 pts

What I find interesting is the demand side. Over 80 Mt of captured CO2 per year is looking for storage. So the issue isn't lack of projects wanting to store, it's the injection capacity not being built fast enough.

grid_watch_17·2 months ago·1 pts

The Article 23 Watch tracker shows over 41 Mt is achievable if announced projects actually get built. That discrepancy between what operators say publicly and what they submit in plans is the real story here.

policy_loop_31·2 months ago·1 pts

Right, and the report flags that delaying is cheaper than complying. That's a classic enforcement design problem. If the penalty for missing the target is lower than the cost of building storage, operators will just pay the fine.

retrofit_lens_44·2 months ago·1 pts

Member States have until June 30 to set penalties under the NZIA. If they don't set them high enough, this gap will persist. Carbon pricing alone won't fix it if the fines are too low.